The IOC voted to select the host city of the 2020 Summer Olympics on 7 September 2013 at the 125th IOC Session at the Buenos Aires Hilton in Buenos Aires, Argentina. An exhaustive ballot system was used. No city won over 50% of the votes in the first round, and Madrid and Istanbul were tied for second place. A run-off vote between these two cities was held to determine which would be eliminated. In the final vote, a head-to-head contest between Tokyo and Istanbul, Tokyo was selected by 60 votes to 36.

The Tokyo metropolitan government set aside a fund of ¥400 billion Japanese yen (over $3 billion USD) to cover the cost of hosting the Games. The Japanese government is considering increasing slot capacity at both Haneda Airport and Narita Airport by easing airspace restrictions. A new railway line is planned to link both airports through an expansion of Tokyo Station, cutting travel time from Tokyo Station to Haneda from 30 minutes to 18 minutes, and from Tokyo Station to Narita from 55 minutes to 36 minutes; the line would cost ¥400 billion yen and would be funded primarily by private investors. But East JR is planning a new route near Tamachi to Haneda Airport.[3] Funding is also planned to accelerate completion of the Central Circular Route, Tokyo Gaikan Expressway and Ken-Ō Expressway, and to refurbish other major expressways in the area.[4] There are also plans to extend the Yurikamome automated transit line from its existing terminal at Toyosu Station to a new terminal at Kachidoki Station, passing the site of the Olympic Village, although the Yurikamome would still not have adequate capacity to serve major events in the Odaiba area on its own.[5]

Following the 2012 Games, the IOC assessed the 26 sports held in London, with the remit of selecting 25 'core' sports to join new entrants golf and rugby sevens at the 2020 Games. In effect, this would involve the dropping of one sport from the 2016 Games program. This would leave a single vacancy in the 2020 Games program, which the IOC would seek to fill from a shortlist containing seven unrepresented sports and the removed sport. Events such as modern pentathlon, taekwondo and badminton were among those considered vulnerable.

On 12 February 2013, IOC leaders voted to drop wrestling from the Olympic program, a surprise decision that removed one of the oldest Olympic sports from the 2020 Games. Wrestling, which combines freestyle and Greco-Roman events, goes back to the inaugural modern Olympics in Athens in 1896,[8] and even further to the Ancient Olympics. The decision to drop wrestling was opposed in many countries and by their NOCs.[9][10][11][12] Wrestling therefore joined seven other sports in a list of eight applying for inclusion in the 2020 Games.

It was confirmed in February 2012 that the National Olympic Stadium in Tokyo would receive a $1 billion upgrade and full–scale reconstruction for the 2019 Rugby World Cup as well as the 2020 Olympics.[16] As a result, a design competition for the new stadium was launched. In November 2012 the Japan Sport Council announced that out of 46 finalists, Zaha Hadid Architects was awarded the design for the new stadium. Plans include dismantling the original stadium, and expanding the capacity from 50,000 to a modern Olympic capacity of about 80,000.[17]

28 of the 33 competition venues in Tokyo are within 8 kilometres (5 miles) of the Olympic Village. 11 new venues are to be constructed.[18]

On 6 January 2011, the IOC announced that it was considering packaging the U.S. television rights for four Olympics instead of the usual two: the 2016 and 2020 Summer Olympics, and the 2014 and 2018 Winter Olympics. The IOC's lead negotiator Richard Carrion told the Associated Press the bidding war would be waged among NBC, ESPN, Fox and perhaps a CBS/Turner coalition. "We realize this is a major decision going forward for any of these guys," the IOC member from Puerto Rico said. "I would certainly support it if they want to go to four games, and do all the way to 2020."[19]

IOC president Jacques Rogge heads the exclusive TV Rights and New Media Commission, but the organization of bidding falls to Carrion, who meets regularly with the networks to stoke interest in airing Sochi 2014 and Rio de Janeiro 2016. In packaging four Olympics, Carrion had another two Games to sell, but the 2018 host city would not be selected until 6 July 2011, and the 2020 host until 2013. The IOC took its time to seek a new deal for the U.S., hoping to ride out a recession to get the best price possible. The U.S. television rights are the IOC's single-largest source of revenue.[19]

On 7 June 2011, the IOC awarded the U.S. television rights for the four Olympics to NBC in a deal worth more than $4 billion.[20]